Elin Electronics Ltd

BSE:543725

Revenue Growth: Q3 revenue grew 10% year-on-year to INR 294 crores, driven by strong performance in appliances and fan business.

Margin Expansion: EBITDA rose 57% to INR 11.9 crores; however, gross margins were pressured by rising raw material costs (copper, steel, aluminum), with a 40bps decline.

Strong Liquidity: Company maintained a net cash position of INR 59 crores and working capital days increased to 68 due to higher inventory, expected to normalize next quarter.

Positive Business Outlook: Management guided for 9%-10% annual revenue growth and 5.3%-5.8% EBITDA margin for FY '25 to FY '26, with higher margins expected from exports as US tariffs ease.

New Products & Customers: Significant customer additions in lighting (now serving 5 new customers), and robust growth in BLDC fans and home appliances; medium appliance capacity (Bhiwadi plant) on track for May 2026 launch.

Pricing Power Returning: Lighting price erosion expected to reverse with 4%-5% price hikes anticipated soon due to higher component costs.

CapEx & Expansion: FY '26 CapEx targeted at INR 100–110 crores, mainly for the Bhiwadi plant, which is expected to add INR 140 crores revenue in FY '27 and INR 250 crores in FY '28.

Export Rebound: Exports to the USA expected to resume as tariffs are lifted, offering higher margin opportunities.